Which One of the Following Statements Related to Payback and Discounted

question 51

Multiple Choice

Which one of the following statements related to payback and discounted payback is correct?

• A)Payback is a better method of analysis than is discounted payback.
• B)Discounted payback is used more frequently in business than is payback.
• C)Discounted payback does not require a cutoff point like the payback method does.
• D)Discounted payback is biased towards long-term projects while payback is biased towards short-term projects.
• E)Payback is used more frequently even though discounted payback is a better method.

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Definitions:

One-sample T Statistic

A statistical measure used to test the hypothesis about the mean of a normally distributed population when the population variance is unknown, based on a sample.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Normal Distribution

A continuous probability distribution that is symmetrical around the mean, showing that data close to the mean are more frequent in occurrence than data far from the mean.

T Statistic

The t statistic is a value used in statistical analysis to determine the significance of the difference between two sample means, relative to the sample variability.